Posts Tagged Down Payment

The VA Loan Funding Fee | Salt Lake City Mortgage

One of the great things about a VA loan is that there is no mortgage insurance (MI), however even the VA Loan Funding Fee can vary or even be waived depending on the amount of down payment, subsequent use or disability of the veteran.

Here is a quick guide to how much you can expect to pay as a funding fee for your VA loan:

Purchase and Construction Loans

Type of Veteran

Down Payment

Percentage for First Time Use

Percentage for Subsequent Use

Regular Military None5% or more (up to 10%)

10% or more

2.15%

1.50%

1.25%

3.3% *

1.50%

1.25%

Reserves/National Guard None5% or more (up to 10%)

10% or more

2.4%

1.75%

1.5%

3.3% *

1.75%

1.5%

 Cash-Out Refinance Loans

Type of Veteran

Percentage for First Time Use

Percentage for Subsequent Use

Regular Military

2.15%

3.3%

Reserves/National Guard

2.4%

3.3%

Type of Loan

Percentage for Either Type of Veteran Whether First Time or Subsequent Use

Interest Rate Reduction Refinancing Loans

.50%

Manufactured Home Loans (NOT permanently affixed)

1.00%

Loan Assumptions

.50%

 The following persons are exempt from paying the VA funding fee:

  • Veterans who are receiving VA compensation for service-connected disabilities.
  • Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.
  • Veterans who are rated by VA as eligible to receive compensation as a result of pre-discharge disability examination and rating and,
  • Surviving spouses of veterans who died in service or from service-connected disabilities.

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First Time Home Buyer Tax Credit Extended and More!

It’s official! Congress has approved an extension of the $8,000 tax credit for first-time home buyers to sales contracts entered into by April 30, 2010 and closed by June 30, 2010.

This is good news for all those that weren’t quite ready to buy a home this month.  Something to think about if you are expecting a tax return in the first part of the year that you would like to use for a down payment.

And in even bigger news, along with extending the first-time home buyer tax credit, Congress has added an additional $6,500 tax credit for owners of existing homes who are looking to purchase a new home for their primary residence.  It must be a move-up in home, but still is a great deal to anyone looking to buy a nicer home than they currently have.

And in more good news, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised from $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return to $125,000 for individuals and $225,000 for married couples.

So more people can take advantage of a tax credit next year, new and repeat home buyers alike.

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HUD approves $8,000 tax credit to be used for down payment or closing costs

Today HUD approved the $8,000 first-time home buyer tax credit for buying a new home to be used for down payment or closing costs with FHA loans.  The catch: Finding someone to loan the money up-front against the forthcoming tax credit since no government agency wants to touch it.  We’ll see how this pans-out.  It could be a huge help for may first-time home buyers and those that haven’t owned a home in three years.

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